Adtalem Global Education Q4 2025 Earnings: Revenue Up 13%, Net Income Up 69%, EPS Up 79%

Adtalem Global Education reported FY 2025 earnings with revenue of $1.79b, up 13% from FY 2024. Net income increased by 69% to $232.7m, and profit margin rose to 13%, driven by higher revenue. EPS also rose to $6.27, up from $3.49 in FY 2024. The company forecasts 6.3% average annual revenue growth over the next 2 years, compared to a 9.8% growth forecast for the Consumer Services industry in the US.

Adtalem Global Education (ATGE) reported its fiscal year 2025 (FY 2025) earnings, showcasing robust revenue growth and significant improvements in profitability. The company's revenue for FY 2025 was $1.79 billion, representing a 13% increase from the previous year's $1.59 billion. This strong performance was driven by higher revenue, which grew by 13% compared to FY 2024. The company's net income also surged by 69% to $232.7 million, while the profit margin rose to 13%. These improvements were underpinned by a 21.2% increase in earnings per share (EPS), which rose to $6.27 from $3.49 in FY 2024.

Adtalem's success in FY 2025 was largely attributed to its strategic focus on healthcare education and strong enrollment growth. Key segments such as Walden University and Chamberlain University contributed significantly to this growth. Walden University, for instance, saw a 15% increase in enrollment, while Chamberlain University's enrollment grew by 5.8%. The Medical and Veterinary segment also demonstrated growth, with enrollment increasing by 1.0%.

The company's financial performance was bolstered by its focus on operational efficiency and strategic investments. Adtalem's adjusted EBITDA margin improved by 13.2% to $110.2 million, and its free cash flow increased by 18.3% to $283.4 million. Additionally, the company completed $211 million in share repurchases and paid down $100 million on its term loan, further strengthening its financial position.

Adtalem's outlook for the next two years is also promising, with the company forecasting an average annual revenue growth of 6.3%. This forecast is slightly lower than the 9.8% growth rate projected for the Consumer Services industry in the US. However, Adtalem's strong performance in FY 2025 and its strategic focus on healthcare education position it well for future growth.

Looking ahead, investors should closely monitor Adtalem's earnings call for additional insights into the company's future prospects. The company's Zacks Rank #2 (Buy) rating suggests that the stock is expected to outperform the market in the near future. However, investors should also consider the broader industry outlook and potential regulatory changes that could impact Adtalem's performance.

References:
[1] https://finance.yahoo.com/news/adtalem-global-education-atge-tops-232501308.html
[2] https://www.nasdaq.com/articles/adtalem-atge-q4-revenue-jumps-12